process reengineering

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CHAPTER

3

PROCESS REENGINEERING

INTRODUCTION For many companies, to date, product development is characterized by long lead times, a large number of engineering changes, manufacturing complications, and, ultimately, excessive costs to satisfy the customer requirements. One area that is given more attention to in regaining the con1pany's con1petitivc position, is "product improvetncnt". Product itnprovement in this case means improving product features-adding more con1pctitive features (including hells and whistles) so that" when the product comes out in the market it is attractive to the customer. The effectiveness and efficiency of the engineering, manufacturing, and/or business processes that support development and delivery of the products or services arc given the back seat [Miller, 1993]. Lack of cotnpctitive situations in those co1npanies is not due to product or technology related problems. It is the processthe way the con1panies carry out the design and development of a product and the way their tea1ns spend their ti1ne. For exan1ple, technology might have gotten updated but engineers 111ay not have changed corresponding design process or work habits accordingly. Design-process in this context means how a set of design-tasks is performed. Workproccss ineans hoi,v a set of work tasks or job functions is performed. Most generally, a process is defined as a set of tasks arranged in a particular manner so as to transform a set of inputs into a specified set of outputs (goods or services). Since a task can be arranged in many different ways, there can be 1nany process possibilities of performing a set of design-tasks, manufacturing-tasks or work-tasks. Some could be more efficient or effective than others. Many progressive con1panies are interested in maintaining a competitive edge in the world market and in producing high quality products. They would like to do this at a lower 102

Introduction

103

net cost of production than their competitors. One easy way to increase one's productivity or efficiency is to squeeze more out of the current system. This often boils down to either working harder than before or automating some of the manual tasks rather than working differently. Automation of tasks to some may also mean repeating the same mistakes but doing so more often and more quickly. Many companies are finding that true increase in productivity and efficiency begins with such factors as clean and efficient process, good communication infrastructure, teamwork, and a constancy of shared vision and purpose [Prasad, 1995b]. The challenge is simply not to crank up the speed of the machines so that it outputs (per unit of time) are increased or doubled, but to change the basic machinery or the process that produces the outputs. To accomplish the taller goals, today many organizations are applying CE principles through benchmarking [Freeze and Aaron, 1990], CPI [Ezop, Jacoby and Leach, 1989], organizational restructuring [Juran and Gryna, 1993], "Ts" renovation [Prasad, 1995a; Perry, 1990; Carter and Baker, 1992] and process reengineering [Hammer, 1990; Hammer and Champy, 1993; Roberts, 1994]. The walls between various groups and departments, that existed a decade ago, have crumbled [Tutle, I 983]. Today, it is beeoming more important to get inputs from all facets of organization, since no single group or department is expected to know or do everything. An organization is looking at how to run the business effeetively and determine if it can be improved in some way. One item that is becoming important is that not only everyone in the organization should know what activity he or she is performing or engaged in, but the rest of the team should also know how their activities add to the big picture (constancy of shared vision and purpose). There are six parts (5W I H) to winning the compeliti veness battle (See Figure 3.1 ): • What? (tasks, object inputs, outputs. and process steps including measures, and deeision points) • Who? (talents, teamwork, subject customers, and supply chain) • Why? (techniques, purpose, funetion, and rationale for decision making) • When? (time, process order, and structure) • Where? (technology gaps, space process relationship, and its context to the whole) • How? (tools, method process boundaries, and process flow) Knowing what information is required or task to perform is one sixth of this baltle. How this information or task satisfies the corporate goals is a second part of the baule. The remaining pieces include the following: • Who makes up the team? • Who needs it? • Why this technique or process will not work? • Why is this information needed? • Where will this information be used? • When is the optimum time (to do it)? • Where are the right places to use this techno logy?

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Chap. 3

What information is required?

Where are the right places to use this?

When is the optimum time to do this task?

How does this infonnation satisfies the corporate goals?

What Where

How

When

Who Why

Who needs the infonnation?

Why is this information needed?

FIGURE 3.1

Questions Assessing the Improvement Needs

Though in Figure 3.1, parts are equally divided, in practice some pieces will be more important than others. "Who needs it" facilitates smooth communication and "why this information is needed" determines how valuable it is to a person, team, or the organization. "Where this infom1ation will be used" dctern1ines the right place, "when to do" denotes the right time and it is the contributing factor to 111ecting fast-to-n1arket or concurrency goals. By knowing what we do today and how we do it, we will be in a better position to identify bottlenecks and barriers in the current system and possibly i111provc operations, if opportunities arise. Process improvement is a concept often used to accomplish many lean production goals [Prasad, l995b]. In son1e organizations, process improvement is often perceived as an after-thought-a functional service to be called upon periodically for productivity improve111ent. In such companies, process is viewed closely with work force productivity improvement (continuous process improvement) or organizational restructuring (reordering of tasks). Others who have paid little n1ore attention have concerned themselves with process restructuring. Process restructuring is often targeted toward causing piece-wise or one-at-a-time in1prove1nents due to incre1nental or add-on approach of continuous improven1ent in 1nanufacturing process, product quality, etc. However, the perception is

Sec. 3.1

Understanding and Managing Change

105

clearly different in companies following lean production principles. In those companies, process improvement is seen as a pervasive set of renovation activities that form the life blood of the company's regenerating profit potential [Miller, 1993). Process renovation is a modification approach that critically examines those 6 pieces of the battle, rethinks them through, and then redesigns-the mission-critical products, processes, and services within an organization. Process reengineering is used here to mean one or more of the above process modification strategies. In applying a process reengineering (PR) strategy, a team collectively comes up with a process that takes into consideration the needs of all individuals and work-groups. and above all, the needs of the company as a whole. The choice of the term "process" in PR speaks loudly that the focus is on processes as opposed to products. A process may refer to a design-process, a manufacturing-process or a work-process. The term "reengineering" implies that the change or effort is directed toward an array of process modification strategies. More frequently, reengineering implies either starting with a clean slate (a new process) or radically overhauling-meaning replacing the old processes with completely new ones. During an implementation of PR, the following is assumed: 1. An organization is in eonstant touch with new technological advances in all related fields such as engineering, process, computers, and systems. 2. The team regularly examines those latest advances in the fields, benchmarks and then reviews some key candidates for improvements in the product life cycle. 3. An enterprise employs those technological advances, if they sound appropriate or applicable, as a part of overhauling the process wagon to improve its efficiency, productivity, or performance. In actual practice however, these are difficult goals.

Reengineering generally provides companies with opportunities to do things differently and creatively and to distinguish themselves from their immediate rivals.

3.1

UNDERSTANDING AND MANAGING CHANGE Changes are an essential part of any improvement. Whatever new steps or new tools we introduce require change. With the new tools, if we do not make the corresponding changes in the processes or work habits, we would be making the same mistakes but perhaps more often with the new tools. In other words, we may be computerizing or automating a bad process. So the question we must ask is how to successfully introduce and manage change.

• The first step before we introduce a change is to understand the change process. In CAD system for example, each change generates and stores a new version number of the design files, so that the designer can backtrack if required. Understanding the change process requires knowing

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When to change How to change Ho1,v to cause change Where to change What to change How to promote change so that the improve1nent cycle repeats The key factors that influence the change process are 7Ts (tasks, talents, teamwork, techniques, technology, time, and tools) [Prasad, 1995a]. Sometimes where to change and what to change has involved performing strategic review, which is an expansive tern1 for a 1,vell-known con1petitiveness analysis process called SWOT. SWOT stands for Strengths, Weaknesses, Threats, and Opportunities. Market analysis provides the points towards each of the four SWOT groups. They are listed in four quadrants of an axis-diagran1 as shown in Figure 3.2. The second step is to 1nanage the change. Corresponding to the steps of understanding change there are also six steps to n1anaging change: Leading the change process Setting the direction 0

Strengths

Weaknesses

Er::amples

Examples Unexperienced Workforce or Talent Controversial Tenm Late Introduction Motured Teclmology Priced High for Market Poor Performance

Ex'Pcricnccd Workforce or Talents Coopcrntivc Tearn Early lntrcduction Edge on Technolgy (Patent) Lock on Materials Lock on Tcclmiqucs (Process) Tasks Performed Concurrently

Tosks Performed Serially

SWOT Threats

Opporlu nities

Examples

Examples

T

0

Time-to-Markel Vanishing Talcnts Fluctuating Market Demands Market Alignments Company X, Y Future Old Technology Declining Product Quality

FIGURE 3.2

Acquire New Talcnt Introduce New Technology In1roduce CE Concept Training and Education Partnership and Automation Introduce New Tools Simplification Global Manufacturing

SWOT

Analysis

Sec. 3.1

• • • •

Understanding and Managing Change

107

Crealing Lhe environment for change Challenging past practices and excuses Removing lhe barriers and roadblocks Rewarding the right things so lhat change conlinues to evolve.

The first and second steps are schematically shown in Figure 3.3 by two annular rings. Managing the change process is also referred to as LSC2 R2 . Where the abbreviated word represents lhe first Jetter of the steps involved. Setting the direction involves method of data collection, determining the change frequenc y, and determining the change complexity. Collection of data that measures the number and magnitude of changes is important. The estimation of the frequency of changes (number of changes per unit o f Lime) is usually made by monitoring the CAD files of the designers. The way to determine the change complexily is to examine the CAD file progression and to look for change notes, file numbers. dates, and times . Challenging past practices and excuses involves, lo a large ex-

'

Setting the Direction

Why to Change?

L

Change? How lo Change? What to Change?

LEGEND:

Inner Ring: Understanding the Change Process Outer Ring : Managing the Change Process

L S C 2 R 2 : Leading. Setting, !.;.realing !,;_hallenging, Removing, and Rewarding FIGURE 3.3

Understanding and Managing the Change Process

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Chap. 3

tent, understanding the sources of waste. Waste exists in all work activities, all process tasks, and at all levels in the organization. Taiichi Ohno has reported seven types of waste (muda) commonly found in a manufacturing work-site [Ohno, 1988]: Waste of overproduction Waste of correction Waste of material movement Waste of processing Waste of inventory Waste of waiting Waste of inotion The one type of waste (1nuda) that is missing from the Ohno's set is the waste of inforn1ation 1noverncnt [Prasad, l 995b]. Waste of information movetnent is concerned with unnecessary transfer of infonnation between two or more dissimilar systems (computing systems or otherwise). Examples include conversion from one format to the other, upload and download of inforn1ation, files retrieval and storage, unnecessary notification or notes, one-to-many comtnunications instead of posling publicly (many-to-many), data security, etc. This completes the set of eight wastes sho\vn in Figure 3.4 Removing the ban·iers and roadblocks to a large extent involves eliminating waste and the associated reworks. W. Edwards Deming has proposed fourteen things that cornpanies, large or small, can do to ensure that change is an ongoing and positive experience [Deming, 1993]. These product improvement efforts can be categorized into four primary reengineering strategies:

1. A set of continuous process in1provement (CPI) tactics (e.g., consistent or common environment) 2. A set of restructuring tactics (e.g., com1non best corporate system) 3. A set of organizational traits (e.g., agile and virtual organizational traits) 4. A set of renovation tactics (e.g., best industry practices, innovative and unmatched practices) The key in managing change is, therefore, to establish an opti1nal balance between the types of process hnprovement strategics that were chosen and introduced from each category. Product and process reengineering follows its own life cycle. Figure 3.5 shows degree of severity in managing change. A soft common process improve1nent strategy is benchmarking. Benchn1arking is a strategy that is com1non to all four reengineering strategics. Benchmarking is an aboveboard and perfectly legal way of finding out how others are doing compared to one's own system. One could also learn from this exercise and imitate what is identified as better in the competitors' product or perhaps in1prove upon their approach. Other soft strategies are "as-is" flow-charting, value engineering, value analysis, etc. Figure 3.5 illustrates four approaches of reengineering. This section begins with CPI Strategies and traits, to effectively manage the changes.

Sec. 3.1

Understanding and Managing Change

109

Types

of Waste

FIGURE 3.4

3.1.1

Eight Types of Waste

CPI Traits

Continuous improvement is the basic trait for causing change. If the process is stable, CPI allows pace with the known common changes. In CPI, some prevalent tactics used are to identify and eliminate wastes and to identify and eliminate rework. Some popular CPI traits include the following: • • • •

Motivation and reward system Identification of key elements of scope and applications Employee participation Management commitments

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Chap. 3

Agile and Virtual Traits

Types or Reengineering Strategies

Common Best ~-""--"''---=C~orp.oral.e System

Common EnviroMlent

Degree or Severity or Change

FIGURE 3.5

3.1.2

Degree of Severity in Managing Change

Restructuring Traits

Restructuring

is the next level of process improvement strategy. Restructuring means

transforming from old ways of conducting business to a new way: Use the same level of abstraction in product, process, enterprise, and behavioral modeling At a minin1u1n, maintain the systems; perfonnance (product functionality and se~ mantics) and efficiency at the same level as the old Some examples of restructuring include the following: • Refocusing the efforts in the definition phase, so that the product is done right the first time it is released for design intent Prioritizing the tasks with the customer in 1nind Defining a common best corporate system for CE Some examples of restructuring traits include the following:

Sec. 3.1

Understanding and Managing Change

111

• Partnering with supply base, collaboration, supply chain • Cross-functional integration • 3Ps (policies, practices, and procedures) • Empowerment

3.1.3

Organizational Traits

Over the last few years there has been a flurry of activity in the study of manufacturing systems, and, more particularly, the mechanical design process. There is no consensus about what the tenn "design" means, nor is there an agreed upon description of a process improvement methodology. Often, process improvement has been wrongly construed as simply an organizational restructuring. By carefully restructuring departments into a modern multi-functional setup, an enterprise cannot expect lo reap all the desired productivity gains. Though organizational restructuring has the potential of breaking down cultural barriers, the conventional product realization process, such as serial engineering, remains intact. One of the important elements of "managing change" is the organizational traits. There are two elements of organizational traits: agile and virtual. They form the left arm of reengineering strategies. The right am1 consists of CPI (continuous process improvement) and restructuring. These two arms are sandwiched hetween renovation traits at the top and CE infrastructure at the bottom (see Figure 3.6). There are four agile organizational traits supporting the business goals: • • • •

Lean manufacturing seventeen tactics Reconfiguration Responsive Plug compatibility

Likewise, there are four virtual organizational traits supporting the business objectives: • • • •

Decision making Team cooperation Virtual links Communication networks

Chapter 6, Section 6.6 discusses these traits in much greater depth.

3.1.4

Renovation Traits

Renovation is the highest level of strategy for managing change that commonly cannot be handled by the continuous improvement, restructuring methods, or organizational traits. In the words of Hammer this type of, "reengineering strives to break away from the old rules about how we organize and conduct business ... (by) recognizing and rejecting

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Agile OrganiSet Enterprise Operational and Business Goals

Set IPPD Goals and Objectives

Rationalize IPPD Stratcgjcs, Tactics, and

Projects

Develop a Broad Enterprise System Model

zational Traits

FIGURE3.6

Reengineering Strategies and Business Goals

Chap. 3

Sec. 3.2

Reengineering Approaches

113

some of them and then finding imaginative or innovative new ways to accomplish work" [Hammer, 1990]. In essence, the three are complimentary rather than opposing approaches to improving processes. Some examples of renovation traits include the following: • • • • •

3.2

Flexible manufacturing Down-sizing traits Metrics (DFX, QFD, CAE, etc.) Data management (PDM, PDT) Asset management (see Figure 3.6)

REENGINEERING APPROACHES Reengineering plays a pivotal role in the CE process. The key to any (manufacturing company) competitive posture lies in its ability to reengineer a business for agility-both physically and logically. Faetories, systems, and organizations must differentiate and remove nonvalue added functions from the chain of design-tasks, manufacturing-tasks and work-tasks, and foster open lines of communications. Reengineering helps define strategies for bringing manufacturers, suppliers, and customers closer together. Reengineering means taking steps to redesign and simplify business systems and processes, seareh out best industry practices (3Ps) to develop a more competitive work force, and to explore new process methods (see Figure 3.5). It fosters out-of-comfort-zone thinking, relies on value-added benefits to both the customer and the business, and focuses heavily on 7Ts (talents, tasks, teams, techniques, technology, time, tools, etc.). Reengineering requires follow through until the new process is firmly entrenched. CPI is one of the simplest reengineering strategy. Work-groups empowered and charged with CPI typically lack the authority, perspective, and/or capability to implement radical changes that cut across functional lines. It is not true for restructuring. The restructuring team involves multidisciplinary leaders from each facet of the organization. Such technical leaders charged for restrueturing have the needed authority and perspective to implement radical changes that cut across functional lines. Unlike restructuring, renovation involves alterations in the level of abstraction to reconfigure the subject system. It may involve reconstituting this subjeet system into a new form or to a new level of abstract descriptions, and a prior implementation of the altered form. In renovation a majority of the experts in the team come from outside the immediate area of investigation. This way, the changes proposed can impact other processes or otherwise impact the interest of the organization as a whole rather than a few specific units. An example of renovation is the reorganization of a company by a "product line." In this case, each area of the organization, which is involved in the particular product, must work together with common organizational goals and objectives. Incorporation of best industry practices or innovation, and unmatched practices are some examples of renovation efforts. There are many ways to accomplish reengineering: top-down, bottom-up, or incremental. The top-down, and bottom-up approaches are discussed in Section 3.6.2. In the case of incremental reengineering, new tools and systems can be introduced one batch at a

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Chap. 3

ti1ne. As the team gets fa1niliar or trained in one set of systems or its use, other sets are introduced progressively. The deployment is done on an incremental, "pay~as-you-go" basis to ensure a managed in1pact. Recnginecring can also be achieved by combing a couple of process improvement strategies discussed in Section 3.1. The two n1ost popular reengincering strategies are listed as follows:

Cotnbining CPI with Restructuring: So1ne processes do not need to be redesigned at frequent intervals, since most of the original processes remain intact. It inight be just enough to first design the systetn for optirnu1n performance and then incrementally improve it (the system) over ti1ne as the needs for fine tuning become evident. Recngineering in this case consists of a one-time design for optiinum perfonnance and a series of CPI, followed by restructuring fired at regular intervals as shown in Figure 3.7a.

Cofflhining Restructuring with Organizational Traits: Some processes tend to have a useful life of their own. Other times, due to changing external environment, market conditions, or changing technology, these original processes no longer remain an effective solution/option. In such cases, these processes have to be restructured a number of ti1nes throughout the product's life cycle. Applying agile or virtual organizational traits at frequent intervals may very well be in the best interest of the corporation to stay healthy for a long haul. Reengineering in this case consists of a one-time design for optimum perfonnance and a series of restructuring followed by the application of organizational traits at regular intervals as shown in Figure 3.7b.

3.3

TENETS OF PROCESS IMPROVEMENT (Pl) Regardless of ho\v a process ultimately becomes implemented or accomplished, process improven1ent (PI) is always concerned with defining a broad range of metrics: some that arc productivity related (how efficiently arc the resources being utilized) and some that are perfonnancc related (how effective are the results or the returns). Productivity measures involve anticipated or measured levels of activity, such as the number of parts manufactured per unit of 1nanpower, nutnber of lines of coding per unit of time, number of reports done, etc. Performance measures involve anticipated or measured level of outputs relative to a specified set of goals-for example, expected return on investn1ent, customer satisfaction, expected or measured profitability, inarket share, etc. PI metrics are necessary for both program planning and progran1 evaluation. Program planning relies on past perfonnance and judgments whereas progran1 evaluation needs measurement information combined with judg1nents in co1nputing either the efficiency or the effectiveness factor. In this context the following definitions apply [Roberts, 1994]:

Process efficiency is concerned with degree of economy-how well a process uses available 7Ts (talent, tasks, teams, techniques, technology, time, and tools) to achieve

(a)

Identify 8 types of Waste and Rework

Changing Needs

Changing Needs

Changing Needs

CPI Docwnent Current Process ('ns·is')

Design the "as-is" for Optimum Perfonnance

Restructuring the 'to-be" for Optimwn Perfonnance

'To-be

"As-is'

Re-do Incrementally Improved Over-time (balancing)

Eliminate 8 Types of Waste and Rework

CPI Restructuring the 'to-be' for Optimwn Performance Re-do

Incrementolly Improved Over-time (balancing)

Restructuring the "to-be" for Optimwn Performance Incrementally Improved Over-time (balancing)

Re-do

..- -.- ·-·-.- ·-. -·-·- ·- ·-. -. - ·-·-·- . - .-· -·-· ............... -·-· -·-.-.-.-.-.-.-·-·-.- ·-.- ·-.-·-.-·-·- ·- ·---.- . - .-. - ·- .-.-.-·-... ·-. -.- .-.-.-.-.-.-.-- ---·-· -· --- . - . - .-.-· -· ---·-·.. ·-.-.-....-.-

·~

Identify 8 types of Waste and Rework

E"tcmal Envirorunent Changed

External Environment Changed

Restructuring

Restructuring Document Current Process ('as-is")

Apply Organizational Traits for New Process and Environment

Design the 'as-is' for Optimum Perfonnance "To-be

' - -- - - - l

....... (J1

Eliminate 8 Types of Waste and Rework

External Environment Changed

End of Life for Process I

FIGURE 3.7

Restructuring Apply Organizational Traits for New Process and Environment

End of Life for Process 2

Combined Reengineering Approaches

Apply Organizational Traits for New Process and Environment End of Life for Process J

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Chap. 3

the desired results. Improvement in process efficiency is concerned with eliminating process waste and reworks. "Waste ofprocessing" is the unnecessary process-related efforts, which add no value to the output (product or service) (see also Figure 3.4 for other types of waste). Exatnples of "ivaste of processing" include expensive machines or a process to produce the same quality part, lack of clear customer specifications, enhanceincnt that is transparent to the user, process bottlenecks, etc. Exa111ples of process rework include endless refinements, repeated functions, unnecessary iterations, redundant approvals, etc. Waste of processing is of two types: 1. Waste caused by the individual slack conditions 2. Waste caused by the lack of integration or coordination During waste of processing slack condition, one or n1ore of the following six elements are active at the work-site: n1achine, managcn1cnt, tnanpowcr, 1natcrials, method, and n1oncy. They arc analogous to the input drums of a friction powered system as schematically shown in Figure 3.8. Central drum is an output drum, which is being powered by a set of six surrounding friction drums. Friction is the driving force in transmuting power. The central dru1n denotes the return on investments (ROI) or profitability. The six rotating friction dru1ns represent the individual contributions to the ROI. If there is no slip between the friction drun1s and the center dru1n, the system will operate at its full efficiency. The no-slip conditions are given by: CO;* di= Constant

for \I i; i = I, 6

(3.l)

Where mi is the angular velocity of an ith friction drum and di is the corresponding diameter of the ith friction drum. If all of the six drums are not synchronized, slip will occur at the interfaces. A nonsynchronizcd condition is given by: for \Ii; i= I, 6

(3.2)

Where w0 is the angular velocity of the central drum and d0 is the corresponding diameter of the central drum. The symbol *denotes "not equal to." The above two equations are true for all values of i. Efficiency is the result of the integration of 6Ms (machine, manage1nent, 1nanpower, materials, methods, and money) at the work-site. Some common factors that can cause slips (or waste in the manufacturing setup) arc unevenness of the mating surface, overhurdcn (due to heated or loaded conditions), and the process method used. The process n1ethod is the associated mechanism to transfer energy from one dru1n to the other. In the case of the drum exa1nple, friction represents the process method. Slip will deteriorate the individual effectiveness of the friction drun1s. Similar to slips-which is due the individual contribution of the 6Ms-ovcrburden, unevenness, and process n1ethods arc also caused by lack of integration or lack of synchronization between 6Ms and the outputs. The Jack of efficiency has an effect in reducing the,product' s life-cycle time. There exists an inverse relationship between process efficiency and the life-cycle lead time. Figure 3.9 shows the relationship between process efficiency, 11, and the lead time, T. Figure 3.9a shows the trend when the process is at an original un-

Sec. 3.3

Tenets of Process Improvement (Pl)

117

Possible Slip

[=4

I=!

Central Drum

LEGEND: I = An Identification for a Rotating Friction Drum d = Diameter of the Friction Drum ro = Angular Velocity of the Friction Drum FIGURE 3.8

Elements of Process Efficiency at the Work Site

changed state. The dashed lines show how the lead time decreases from Ti to T2 when the efficiency is improved from Tl 1 to ri 2. Figure 3.9b shows how conditions might change if the original process is altered or improved. Three curves are shown (in Figure 3.9(b)) corresponding to the following three situations: When the initial state (given process configuration) is altered (a) using CPI, (b) using restructuring techniques, or (c) using renovation strategies. In each case, at the start of the improvement process, the rate of decrease or drop is obviously quite steep indicating that a small increase in efficiency has a large impact on the lead time. This trend slows down as incremental improvements continue to be made in the efficiency of the original state of the process. At a later point in improvement, it is more difficult to squeeze in additional decrease in cycle lead time. A lot more effort {7Ts) is required to achieve meaningful gain in lead time. This means the efficiency has reached its peak for a given state of process configuration. In Figure 3.9(b), therefore, three peaks are shown corresponding to these three process improvement situations. Clearly the peak efficiency is a function of the (i) state of the current

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Chap. 3

(a) Lead Time venus ProceJs Efficiency at Original State of Process Conflguration

T

Current Pro:::ess Configuration

I

Lead Time

I 'lz

"1

Process Efficiency ( 11 )

WS#-Ji'.it*Tf?*~8,& ~if# *f

•1ni

'

............................. -~; ~~~:~~~s::::~~=~:::~~=~::.: 1 '

1 _1

l j

Current Process Configuration

T

Continuous Process Improvement {CPI)

I

Pro:::ess Restructuring Process Renovation

I

T3

Lend Time : . . . > . , .__

T4 f

T

ren

"1

'lz

Process Efficiency ( 'l )

~h.~L;mp:,,c!H1!~JIT~-~ JL FIGURE 3.9

~

,_ l!-~---

Effect of Process Improvement Strategies on Lead Time

process, (ii) the ?Ts employed to achieve the desired results [Prasad, ! 995a), and (iii) the improvement strategies (for example, CPI, restructuring, renovation, etc.) chosen to accomplish the process improvc1nent. Figure 3.IO shows a comparison of change management process with respect to a dozen or so characteristics.

Sec. 3.3

Tenets of Process Improvement (Pl)

Element•

Contlnuou1 Improvement

119

Rettructurlng

Renovation

Little investment, but Little investment, but more Large investment, but little e.trm to collective effort and time put management effort is required maintain in are large

Requlrcmenb

Selective input, key groups c o = driven

Approach

Collective input, every vote COWits

Buis

Built on conventional knowhow and attitude

Orientation

People/work-groups

Organizatioo, leaders, management staff

Involvtment

Everybody

Leaders and management staff

Foc:u1

Geared to eliminate waste, defects, error, or to make process improvement

Geared to change the pace, manpower rotation, new product orientation

Time-frame

Continuous and oogoing

IncreUlClltal and periodic

lntennittmt and fragmental

Mode

Maintenance ond Improvement

Rcorgaiz.c and Restructure

Scrap and Rebuild

Change

Gradwil and Components-wide

Incremental but system-wide

Radical and S(l"lletimes volatile

Pace

Slow, smaller steps

Medium nnd large steps

Giant leaps

Effect

Long-term, permanent. and wmoliceable

Short-term, permonent, and sustainable

Short-term, dnmatic, and noticeable

Con1trelnh

Time

Skills. employees' talents, ability to manage

Technology feasibility. applicability, or cost

Return on Inn1tment (ROI)

Mild

High

Dramatic

FIGURE 3.10

Rugged individualism, results driven

Built on existing trained stnff, Built on technology transfer, in-house innovation, or technological leaders, new trnining, and reorientation brcakthrough Technology, process, methods, etc. Selective, few "champions" Geared to make quantwn jump in technology use or break traditions

Comparison of Change Management Process

• Process effectiveness is concerned with how well the process actually accomplishes its stated goals, here again from the "constancy-of-purpose" perspectives. Managers of concurrent engineering teams face a demanding complexity of unconnected functions and processes as they attempt to improve enterprise operational efficiency. There is a tendency in most teams to operate out of their own self-interest, and within their own comfort zone. They tend to create goals and objectives that primarily address their own unit's contribution without much regard to their impact on the rest of the organization or teams. This has been a part of our behavior psychology and cultural heritage for generations. The problems arise when such goals and objectives are in conflict with other teams' goals. When conflicts arise, the overall quality of the product suffers, affecting time-tomarket and customer satisfaction targets. With greater emphasis on autonomy within CE teams than any time before, it is more likely that some teams, if not

120

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Chap. 3

careful, may create inconsistent or even unrealistic goals. Serious difficulties arise when such goals start competing with the corporate ideology or the socalled enterprise value system. The interest of the company suffers, which 111ay result in serious business loss-team dissatisfaction, loss of productivity, profitability, etc. In CE, therefore, a "system-based improve1nent metric," and not just a team-based (or functional-based) improvement program, is required to achieve enterprise goals and objectives. QFD can be used to define this systernbased improvement n1etric. This can be accomplished by identifying the common areas of interest (rather than the differences), that tend to align a company's separate functions toward a constancy-of-purpose goal. Integrated product and process development (IPPD) is the tem1 often used to describe this improvement process. IPPD process, in the context of CE, is meant to include enterprise-wide operation, not just the product subsystems' integration. Current product design and development is a complex undertaking with a multitude of external and internal inputs, outputs, and relationships. All goals and objectives at each level should be in agree1nent with and supportive of the corporate level vision and n1ission statements with constancy-of-purpose [Dika and Begley, 1991]. This is shown in Figure 3.6. An integrated approach to manufacturing entails the following: Set enterprise operational and business goals and objectives so that the inanagemcnt and strategic teams I. Understand the needs for "constancy-of-purpose" between themselves and downstream product development teams (PDTs) 2. Know who their customers and their competitors are and develop a well thought out strategy for making and selling the product 3. Communicate to PDTs design and manufacture goals of the product (such as sales, marketing, finance, and manufacturing) so as to be competitive in that business. Set IPPD goals and objectives according to "constancy-of-purpose" so that the product development teams (PDTs) 1. Understand their roles in this strategy and know the process and tools for designing and developing the products 2. Develop clearly defined product objectives, including well-defined strategies for product functions in support of specific strategy for making and selling the product; most commonly used examples of product objectives are planning for design, process planning, production planning, fabrication, or assembly, etc. 3. Integrate product goals and objectives in support of the management goals and objectives for 1naking and selling the product; the integration of the different strategies and functions is critical to success. Rationalize IPPD strategics, tactics, and projects to 1. Maintain a constancy-of-purpose between the various teams 2. Understand and analyze PDT functions, fabrications, and assembly processes so that enterprise operations can be performed wilh consistency and quality

Sec. 3.4

Work Flow Mapping

121

3. Establish criteria for measuring the IPPD performance in conjunction with enterprise goals and objectives 4. Optimize the IPPD performance first by redefining internal and external interfaces and relationships, and then optimize its individual functions; it is important to optimize the overall performance rather than attempting to suboptimize each function individually. • Develop a broad enterprise system model that 1. Can establish a manufacturing system design coordinated with product design 2. Does early economic analysis of design-process and manufacturingprocess alternatives to permit rational choices 3. Is capable of rationalizing the system under the combined influence of product, process, and production requirements.

3.4

WORK FLOW MAPPING Mapping is the activity of creating a detailed flow-chart of a work-group process or function using graphics or visual icons to show its inputs, requirements, constraints, and outputs, in an ordered sequence. A work-group process or function (used interchangeably) is actually made out of a series of steps, tasks, or activities and has a beginning and an end. Mapping is used to lay out the details of this process for converting the inputs into an output. Mapping should provide answers to a broad range of questions related to work, process, or methods used to perform an activity. The questions include the following: • • • • • •

Who is doing what? What steps are involved in executing an activity? What are the inputs and the outputs? How long does it take to execute a particular activity? Where is the decision making? What is the order in which activities are performed?

A process or function in this context means either a design-process, a manufacturingprocess, or a work-process. Something that adds value to the inputs by changing them or using them to produce something new-either a tangible product or an intangible service as its output. Mapping is merely an enabler-a means to a more illustrative or perhaps to a more meaningful end. A generic mapping process in shown in Figure 3.1 I.

3.4.1

Process Map

Figure 3.11 shows major steps involved in creating a process map or making process improvement. It is divided into three primary steps:

122

Process Reengineering

Setting Up

Chap. 3

r-----------------1

!

! Materials

Select a Multidisciplinary Temn

''

''

''

''

I-----------------! I

Select 11. Subprocess

: :

:: 11 : I

No

1I

-Flip Chart.Pad. Staod

:I

-Markers

::

1I

1I' -Masking Tape, Clear Tape " 1: 1 l11L________________ i l1

''

!''

Define the Subprocess

I

'

Mapping Map the Subprocess into Primary Activities (Shape Icons)

r----------------1

I' I I I:

Me.p the Data Types inlo Line Icons and Communication Channels into Flow Icon.-.

- 3x5 or Jx3 Cards

't

I Il I: 1I 1

Map Decisionllnspcctioo Points, Mop Interfm:efI'ransfcr Points

Rcfine/Validnte wilh Teams lhat Provided the Inputs (Inner-circle)

Refine/Validate with Teams that arc Intcrfoccd with

Refine/Validate with Teams lhat Bie Outside the Inner-circle

''' ' ''' '''' ' ''' '' '' ' ''' r----------------, 1' 1' -Post-it Notes "1 1 I' -Pencils, Erasers I"l I -Standards Documents I l l I' -Policies and Procedurc;i I"l J: -Jx5orJx3Cerds 11 j l ________________ J l : l

L_________________ J

No No

Sign-off, Record the Final Output

FIGURE 3.11

l

•----------------1 I

Map Altcmate/Pnrallcl Paths, Map Interfaces/Transfer Paths

Refining and Improving

i

-Poot-it Notes -Pencils, Erasers -Standards Documents -Policies and Procedures

Publish aod Mark

Proprietary

Major Steps for Creating a Process Map and Improvement

Sec. 3.5

Information Flow-charting

123

• Setting Up: The first step is broken up into four substeps. To select a multidisciplinary team means to select a group of team-members who are familiar with the current process and are asked to create a process map. Besides the members who do the actual work, the team consists of members from three other groups: those, who give the requirements, those who benefit from the work (or process), and those who manage the resources. Process is considered as decomposed into several subprocesses, which are large enough to mandate their own mapping. The order in which a process is mapped is based on the chronology of events. If the initial team is not a right team for the process selected then the team can be reorganized. The last substep of "setting up" is to define the subprocess. This entails breaking the subprocess into activities, tasks, etc. • Mapping: The next step is mapping the subprocess itself. The map is the paper trail of the subprocess that exists now with all its flaws and inefficiencies. The map captures through proper icons (shape icons, flow icons and line icons)-what activities are performed under the heading of this subprocess. At this stage, generally, we do not bother to ask "why we are doing it" and "who is doing it." Each function or action is represented using inputs, requirement, constraint, and output variables. Icons are used to differentiate between various activities (work functions), communication channels, and data connections. Activities are represented by shape icons, communication channels by flow icons, and data connections by line icons. The primary subprocess with its decision points, alternate paths, and loops is likely to be general. It shows the major critical steps on a macro-level. • Refining and Improvement: This is the last step. This consists of validating the results of mapping with teams of experts from the people who are doing the work, from those who have interfaced at one point, and from those who are managing the resources. Most, if not all, of the steps of primary activities can be broken down further into secondary activities. If the results of validation show any discrepancy, mapping is repeated, otherwise the procedure may be repeated for the remaining subprocesses. Each step in the subprocess can be further broken down into subelements and represented as a sub-subprocess. If wanted, it is possible to take a subsubprocess and break it into its sub-sub-subprocess. The items in the right column in Figure 3.11 (contained within dotted rectangular boxes) represent examples of resources required to complete each mapping step.

3.5

INFORMATION FLOW-CHARTING A flow-chart or process map, is a graphical representation of a process, showing a sequence of steps, tasks, or activities (used interchangeably here) in terms of some standard flow-charting symbols or icons. It is a picture of how a team of employees or work-group does their job. A road network is an example of a map that shows many possible roadways from a chosen starting point to a desired destination. Process maps are similar to

Process Reengineering

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Chap. 3

road networks in that different teams choose different routes to the same destination for different reasons. A good process map is the one that leads to the outputs in some valueadded fashion (such as smallest span of time or minimum cost). It meets all the constraints along the way and leads the organization to a world-class manufacturing or service provider. (See Figure 3.12). A process map is a vehicle to express and release the knowledge, creativity, and energy that lies within every work-group, regardless of its ver-

Wvtld·das¥ Product (It

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Desigo!Dcvclop. Cost·Cffi.'f.ltive Sofotions

Pro=
Process Reengineering

126

Chap. 3

sentations of work-flow, information-flow, and data connectivity on the same chart. Such a conceptual model is often referred to as an information flow~chart. In addition, the methodology used to create the infonnation flow-chart must be capable of the following: • Providing "a simple mechanisn1" towards easy understanding of the current work. methods. and practices Encouraging an open forum of discussion among inside and outside groups to promote a free now of information and activities. On a stand-alone basis, the methodology must provide visual means to improve the curre-nt process in the following manner:

• Seeking peer inputs from the work-groups who were not involved in the interview process in the first place when the information was initially captured Seeking inputs froin management, customers, and plant personnel, and getting their feedback on the effectiveness of the process being used. Thus, the methodology must provide natural means of accomplishing continuous improvements without interfering with the day-lo-day business. Organizations, which are interested in applying the principles of synchronous manufacturing, and the Japanese Product Development Team (PDT) approach, must find this methodology to be useful both as a catalyst as well as the means for the evolution of a more efficient process [Carey, 1992; King, 1987; Oakland, 1989; Eureka and Ryan, 1988].

3.5.1

Forms of Representations

There arc 111any ways the information about a process can be captured or represented. Some modeling schema provides better llexibility than others. An integrated definition (IDEFJ model fits the definition of a typical process reengineering tool [U.S. Air Force, WPAFB, 1981; Yang, 1989] on which more elficient system can be planned. lnfonnation or business leaders use such models to begin the transition fron1 planning to implementation. Other modeling tools employed during process rcengineering are activity rule, business rule, or informarion flow-charts. Infom1ation flow-charts can be captured in many ways, Chapter 7 discusses the use of block diagran1s~ context diagra1ns. fishbonc diagrams, bond graphs, and schematic diagrams for information modeling.

3.5.1.1

Common Methodologies

In this section four key methods for capturing the process information arc described. Petri Nets and System Specification Language arc based on Venugopal and Huang [1989]. !DEF is one of the most widely used methodologies for conceptual modeling. The Air Force's Integrated Computer Aided Manufacturing Program (!CAM) initially developed this methodology for describing complex business rules in their definition program (U.S.

Sec. 3.5

Information Flow-charting

127

Air Force, WPAFB, 1981]. It has been formalized in the Federal Information Processing Standards declared by the Commerce Department's National Institute of Standards and Technology. There are two versions of IDEF methodology, namely IDEFO and IDEF1X. The configuration parts of IDEFO and IDEF l X are shown in Figures 3. l 3a and 3.13b, respectively. IDEF has been found to be most successful in capturing a business process. However, its use as a tool to bring about the necessary continuous improvement in engineering and manufacturing process management has been very limited. • IDEFO: IDEFO is mostly used for functional representations of activities during conceptual modeling. The IDEFO functional model, as shown in Figure 3. l 3a, is composed of ICOMs (Inputs, Controls, Outputs, and Mechanisms), arrows, and boxes. Each activity or function is conceptually represented by a rectangular box with three inward arrows and an outward one. Arrows represent interfaces (ICOMs) among activity boxes. Each activity can be decomposed into many levels, each following the same conventions. An entire IDEFO model is a hierarchical representation of a process composed of activities or functions at various levels. Lower-level activities make up an upper level function. A solid line arrow indicates the flow of ICOMS at each level. The arrows do not cross between levels. The interaction of activities is managed through the boxes representing the activities. Because of the uniformity and limited interaction facilities, IDEFO has been widely used for business modeling. Its application to modeling of engineering and manufacturing processes has encountered some difficulties since it does not allow iterations between the levels. IDEFO ICOMs (Inputs, Controls, Outputs, and Mechanisms)

(3.3)

• IDEFJX: IDEFI X is best suited for relationship representations between the activities. In lDEFIX, a piece of information is represented as an ECAR (an Entity or object, Cardinality, an Attribute to an entity, and a Relationship) [U.S. Air Force, 1985]. In place of attributes, some types of assertions can also be used. Figure 3.13b shows common IDEF IX syntax and conventions where the parent-child relationship is shown using ECARs. Entities or objects are represented by rectangles and arrows. IDEFIX follows a top-down structure, where the top entities are composed of bottom entities. Some entities are shown with a dashed rectangular outline, either to indicate incompleteness, to designate an open relationship, or to clarify a relationship. IDEFIX ECARs (an Entity or object, Cardinality, an Attribute to an entity, and a Relationship)

(3.4)

• Petri Nets: A Petri net is a mathematical representation of the system. Like IDEFO, the four major elements of a Petri net are PTIO (a set of Place, a set of Transitions, an Input function, and an Output function). A Petri net is often denoted as PN: PN PTIOs (a set of Place, a set of Transitions, an Input function and an Output function)

(3.5)

Process Reengineering

128

Chap. 3

CONTROLS (factors that constrain the activity)

OUTPUTS ACTIVITY

INPUTS

(results of the activity)

(information, materials, etc., that are changed within the activity)

MECHANISMS (people, tools, equipment

that perform or support the activity) . - . - . - . - . - . - . - - - . - . - - - . - - - . - ·- -- . - . - .

-.---. -.-. --- .-.----- -- .---

-

(a) IDEFO Methodology Diagram

Independent Entity Name

key attribute attribute A attributeB

Parent Entity

contains (this verb describes the relationship of the parent to the child)

JY (solid lines denote an identifying relationship)

··--...v

Dependent Entity Name ·Kev attribute

attribute A attribute B

(cardinality: C= one or more)

(Solid or Dashed Rectangular Outline) Child Entity

(b) IDEFJX Methodology Diagram FIGURE 3.13

-

- . - . - . - . - . -- - . - . - . - . - . - -- . --·'

Information Modeling Melhodology (a) IDEFO (b) IDEF1X

Sec. 3.5

Information Flow-charting

129

The input and output functions relate places and transitions. Analyses of Petri net models show both the structure and dynamic behavior of the modeled system. Petri net models capture the control associated with the process. They do not capture the information flow as IDEFO does. Thus, mathematically, Petri nets are more rigorous than IDEFO, but are not very useful for change analysis from a product realization viewpoint [Peterson, 1981 ].

• System Specificatio11 Language (SSL): SSL is another methodology to capture the behavior of the processes (Alford, 1986). Behavior is conditional sequence and concurrence of functions transforming inputs into outputs and can describe the actions of a black box [Venugopal and Huang, 1989). It is considered a part of DCDS (distributed computing design system). It consists of F-nets and I-nets. F-nets are structures containing time activities, while I-nets are structures containing data items.

3.5.2

Modeling Conventions

During information modeling, the capture and categorization of product or process flow functions, called "activities," are important to determine their relative values and weight. Different types of connectivity are useful as an aid in identifying the bottlenecks of the information flow that exist in most manufacturing processes. Similarly, different types of communication channels or data flows are useful as an aid in tracking the communication barriers. Problems with data flow and data connectivity can cause delay in information movement, deterioration in the data accuracy, or problems with communications. A conceptual modeling framework is required to identify these specific types of bottlenecks in the current process and provide means to overcome them. • IDEF has no formal mechanism to indicate iterations among a group of activities. • IDEF has no inherent mechanism to represent various forms of data communication such as manual, oral, or verbal (voice-based), or paper-based, computer-based, or physical-aid based. IDEF has a single representation for an activity, a rectangular block type and a single representation for connectivity-a solid line type. This book has followed a convention similar to !DEF, which overcomes the above limitations. This methodology captures the variations in product and process information (activities, information-flow, and data connectivity), along with their functional characteristics. Functional variations of activities are captured through designated graphic icons and connectors. Consequently, this methodology is called information flow-based (IFLO) methodology [Prasad and Strand, I 993]. IFLO associates each activity with a functional type and each connectivity with a data type that links the process information. Thus, IFLO has multiple representations of activity, information-flow, and data connectivity types.

3.5.2.1

Functional Activity, Flow, and Data Connectivity

Icons and blocks are usual means to reflect the various types of activity, types of information flow lines, and data connectivity. Flow lines represent communication channels or flow directions. Figure 3.14 shows eight shape icons, three line icons and five flow icons.

Function, Task, or Activity Types

,

I

Descrietions

Shane Icons

r

I

.

Computer (math-based) Activity

0

Look-up Sheets or

F=:a

·····~··· 0 D

z

Line Icons

Reformat or Transfer (up-load or down-load)

Datn Storage or Retrieval (local or global) ... ,.....

Logic Test (decision)

Descriutions

--

Computer-based Datn.

...................

Paper or Verbal Data

,,..

Dra\vings (papers)

6.V

Information Flow Types

Data Types

-··-··-··-··-··,,..

Prototype or n Physical Part used as an Aid

Descrietions

Flow Icons

~

~

=~ gJ-

Sequential

Parallel

Alternative

Join

.

Comments or Remarks

~_,,..

Vendor-supported

Interfaces

FIGURE 3.14

Shape Icons, Line Icons, and Flow Icons Employed during Enterprise Modeling

Loop

Sec. 3.5

Information Flow-charting

131

Line icons identify the type of data connections. Flow icons JO!Il the activity elements using one or more of the data icons. They are employed in the modeling enterprise process. The shape-icons in Table 3. J correspond to a set of eight basic functions, enabling any complex enterprise process to be modeled (or decomposed into basic functional sets). Data elements are represented by a line with an occasional arrowhead. The arrowhead indicates the movement of data. There are many ways data connections can occur. Data type is the type of data connections linking two or more shape icons. Line icons are the graphical representation of such data connec.tors. Table 3.2 displays the types of lineicons. The flow icons connect the shape icons with line icons and set a flow direction. Tbere are many ways such direction setting can occur. Flow type is the type of infonnation flow between two or more shape icons. Such direction setting options are called connecting flow operators. A flow icon is the graphical representation of such flow operators.

TABLE 3.1

Types of Shape-icons

Shape-icons

Graphical Representation

Remarks

Computer (math-based) Activity

See Figure 3.14

This shape icon is a computer card, indicating that a process or an activity is performed using a computer, or is CAD- or mathbased.

Look-up Sheets or Drawings (paper form)

See Figure 3.14

This shape is represented using a document icon indicating that a document is being used in the process.

Reformat or Transfer (up-load or down-load)

See Figure 3.14

This shape is represented using an up-triangle or a down-triangle icon. It s hows activity that pertains to up-loading and downloading the information or to a transfer (when infom1ation moves from one media to another).

Logic Test (decision making)

See Figure 3.14

Decision making is identified by a decision s ymbol (diamond shape icon). Following this shape-icon. the process would branch into two or more directions depending on the decision possibilities. For example, the decision might be between a pair of outcomes: "Yes" or "No": "Go" or ""No Go," etc.

Data Storage or Retrieval (local or global)

See Figure 3. 14

This activity (shown by a cylinder or a drum) pertains to file management or data management. which may be locally accessed or is available over the network.

Comme nts or Remarks

See Figure 3. 14

This shape icon is a rounded rectangle. It identifies a comment or remark that elaborates or describes an action. an activity or a data now-line.

Vendor-supported (activity pe rformed by an outside source)

Sec Figure 3.14

Jn a global manufacturing setup, vendors perform fun ctions just in-timc to complement production activities. A partitioned rectangle icon identifies the vendor-supported activity.

Interfaces (sources or origins of information)

See Figure 3.14

In CE. teams work in parallel, with shareu tools, and with outside vendors. suppliers. and partners. A cross-hair icon identifies s uch interfaces.

Process Reengineeling

132 TABLE 3.2

Line--ieons

Chap. 3

Typos of Line-icons Grophical Reprl.'.Scntation

Remarks

Dotted Line

Indicates that manual or verbal types of data are involved in the process.

Solid Line

lndicates that the data is computer gencrnted or computer-based.

Chain Line

Indicates that the data is present in s.ome physical form such as cardboard mock-ups, hardware prototypes, or some visual nid~ba~ed fomi.

Five types of such flow operators are usually present in most modeling situations: They are listed in Table 3.3. Eight shape icons, five flow icons, and three line icons are used to represent the various types of activities, information flow directions, and data connections 1 respectively. All hough, each graphic icon is designed to represent a specific work-group function-activity, information flow, or data connection, each can be used in combination to get deeper insights into a particular product or a process situation. Studies indicate that 40%-60% of the typical engineer's or designer's time is spent on nonvalue-added activities. These may represent tasks such as operating system functions (integrating multiple platfonns, multiple operating systems), business interfacing (data transfer, file management, backup), communication (fixing network, protocols), and others. Such activities represent time that is not well spent in core business-which are to design and develop the end products (see Figure 3. J5a). Some industry observers think that, by careful planning, a well-orchestrated enterprise could boost an internal teams' value-added activity (in percentage of their time) to the 75%-&0% range (see Figure 3.l5b). "Well-orchestrated" is used here to indicate a flexible enterprise where tools, concepts, devices, interfaces, control, and communication links are built-in at all levels of the enterprise's business. To achieve this, firms need a logical view of "how they do the business now, and how they want to do the business in the future." One work-group needs to understand, in detail, the work and needs of the other work-group that follows. This is called enterprise modeling-a work flow-charting of the organization. TA6LE3.3

Types of Flow-icons

Flow-icons

Graphical Representation

SL-quential

See Figure 3.!4

Parallel

See Figure 3.14

Alternative

See Figure 3.14

Join

See Figure 3J4

This operator is used when outoon1C of two activities is iO be joined to cons!itutc one larger activity,

Loop

Sec Figure 3.14

This operator is used when there ls nn iteration involved. This usually occurs when a decision icon is present as shown in Figure 3.14.

Remarks

The two activities or functions are executed in series. Two or more activities or functions are placed par-.illel to each other meaning either !he}' lag behind slightly or are execuced simull:mcousiy This is a decision operator. Depending on the decision outcome, this operator is used when controls nece and number of die operations 26 Sl7 Versatec tioDC 1.0

+

Normalized Technical Importance Rankings (TIRs)

+ QCs lllllt corresspond to the points on this

+

++

region represent arellS

+ +

of improvement

+

+

++

+

+

+

+

+ Value Index< 1.0

+

0

1.0

Normalized Cumulative Effectiveness Factor (CEFs) FIGURE 3.21

Value Graph of Quality Characteristics

(CEFs) computed from Equation (3.11). Since each QC has a corresponding TIR value, there will be as many value-indexes as TIRs. These indexes can be plotted on a value graph (sec Figure 3.21). The points on the value graph represent the value index for each of the QCs. The value points that fall on the diagonal line (slope= 1) represent a break even point. The points that fall below the unit slope line represent the areas of possible improvements in perforn1ance or efficiency. The points that fall above the unit slope line represent the good points.

3.8

CHANGE MANAGEMENT METHODOLOGY Understanding where we are starting from is an essential prerequisite for establishing the need for a change. Methodology for change management (CM) has four 1nain elements [Prasad, 1995c] as shown in Figure 3.22: I. Quality Leadership Process (P ): The quality leadership process is focused on 91 determining the sources (many known and unknown factors) such as regularity mandates, customer preferences, technological breakthroughs, and world of busi-

Sec. 3.8

151

Change Management Methodology

.... -· -· - ·-·- ·- · -.-·-· -. - . - ·-·-·-· - . - . - · -·- ·-· -. -·- ·- ·- ·-· -. -. -. -·-· -.-·-·-·-. -·-·- ·-··- .---·-·

~

Change Management Process

Improvement

Process '

;'

Control

Process



············· ·······)Ii--

----~--yes

!

Process

Leadership

Process

j

....................•...i:

Management

Quality

i

No

yes

No

...............................1 yes

FIGURE 3.22 Elements of a Change Management Process and their Relationship to Configuration Management

ness realities that may legitimize the change from both "must-have" and "want-tohave" perspectives. 2. Process Management (PP111 ): This element involves validating the changes-teams analyzing and evaluating the various processes and types of changes under consideration. 3. Change Control Process (Pee): The third element is a change control process. There are many special causes of variations, such as improper setup, operator errors, defective gauging, broken tools, and materials that are under the direct control of the operator (production team). Through preventive action and continuous elimination of their sources of variation, teams can turn an unstable and unpredictable process into a well-behaved process that has a predictable outcome. This process utilizes a routing and queuing model to simulate the impacts of potential change. 4. Improvement Process (Pip): The final element is bringing about the needed improvement. This is very similar to (continuous process improvement, CPI) and is discussed later in this chapter.

Process Reengineering

152

Chap. 3

In other words, CM =J (Pq/• Ppm' P,,. P;p)

(3.13)

Where CM stands for change management andfstands for function.

3.8.1

Quality Leadership Process

In the area of change management, it is important to facilitate and provide a wellbalanced quality leadership, Pql• as unobtrusively as possible. All aspects of a company's operations should be continuously scrutinized, reexamined, and questioned. Total Quality Management (TQM) is a formalized initiative aimed at ilnproving the industrial productivity and quality of products produced by the global manufacturing industry. The Big Three automobile manufacturers have changed their quality standards, which the suppliers must meet to be viable suppliers. Ford Motor went from QJOI to QI and now Total Quality Excellence [Fauteck and Studzinski, 1994]. General Motors changed from SPEAR I to Targets of Excellence and Chrysler Motors moved from Penta Star to Excellence. Organizations need to keep a constant watch on new technologies as they appear, utilizing those that are appropriate for TQM missions: (3.14) Where, Ptqm denotes total quality managen1ent and Pqs denotes quality standards, respectively.

3.8.2

Process Management

The second clement of change management is understanding the change process. Improvements may result from product change, process change, cultural (human factors) change, require1ncnt change, or enterprise operations change. Juran and Gryna [1993] n1ention that a change has a cultural bearing to one's formed eomfort zone. When the level of change exceeds this zone, n1anagernent often encounters some degree of resistance. The effective management of a process necessitates a structured approach that takes into account the "who," the "how," and the "what" of the changes. The process manageinent (Ppm) can be viewed as a five-stage process that can determine company progress. The progress depends on the following measures (see Figure 3.23):

1. Current status (where are we now?)-Pcurrent 2. Future status (where would we like to be?)-P future 3. Analysis of what is lacking in the current process (review of who, how, and what)p analysis 4. How to accomplish the transition (getting therc)-Ptransition 5. Rational criteria or a basis for measuring the company progress

Sec. 3.8

153

Change Management Methodology

FIGURE 3.23 Management

Elements of Process

The process management is thus a function of the first four mea.[Rfuture - Pcurrent l

[ll:urrentl

(3.16)

Carrying out a measurement al the starting point is necessary for the success of the whole change management process. Measurement serves us a rnechanism to further systemati~ cally refine the process, and if needed. to improve and optimize the overall output of the company.

3.8.3

Change Control

The third element is change control process. There are two aspects of change control Pee: (a) minimizing change variety; and (b) adherence to change specifications. (3.17) Where, Pcv stands for change variety and Pcs stands for change specifications. Both Pei· and Pcs reinforce the need for a good configuration management system having a built-in change control process. The latter ensures an orderly set of practices that

154

Process Reengineering

Chap. 3

could recognize and fix errors, could promote CPI and TQM, and could add discipline to decision making.

3.8.4

Total Quality Management Process Map

TQM is an iterative approach to optimize results and is an extension to what is commonly referred to as Continuous Process Improvement (CPI). The development and implementation of a C6 process into a manufacturing enterprise is also a classic example of an iterative approach [Hartley, 1992]. Continuous improvement is a cyclic process of product and process optimization over a product life-cycle. Optimization implies that an organization is keeping in constant touch with new technological advances and frequently employs them to improve an existing product. Cycling means that an organization is continually exploring new frontiers in manufacturing technologies. 111e latest advances in related fields such as co1nputers and systems are often reviewed regularly for possible inclusion in the product development cycle. The appropriate technology is captured and utilized, if it is proven to be the cost effective thing to do. The right decisions are made at the right time while sorting out an array of issues and choices. Successful implementation requires that teams work together, monitor qoality, identify controlling factors affecting them, and find the appropriate technologies. Use of a continual refining process such as QFD is important. Many companies are regularly using such programs in quality and continuous improvement to maintain a world-class competitive position. One of the hallmarks of the Toyota Production system is Kaizen. The Japanese word "Kaizen" may have no clear 6nglish translation. but the old-fashioned American phraset "every day in every way I am getting better and bettern seems a practical way of describing ii. Here, the Japanese tend to study and improve processes manually for years before computerizing it. This is useful for processes that are subject to frequent changes. For processes that are fairly static, Kaizen may appear to be simply a mechanism for obtaining consensus arnong workers before automation. The Japanese perspective~ however, is very different. Their objective (through Kaizen} is to permanently create a culture within a growing organization. This would either (a) help workers prevent the develop" ment of mistakes in the designed product or manufacturing processes, or (b} help prevent errors being passed on to the next operation in the process. This culture includes the utilization of a structured problem-solving process integrated with a mistake-proofing methodology that focuses on product design and manufacturing, both new and ex.isling. Both Deming [1993] and Feigenbaum [1990] emphasize the importance of continuous improvement to assure a firm's long-term viability. A structured approach to problem solving in a customer-driven mode is TQM. A process map for TQM is shown in Figure 3.24. The map provides a visual guide to help improve quality of the activities, services, and products. It consists of three connected bal" loons. It shows CPI as one of the balloons but product improvement is a three"way process. The problem prevention star!s with CPI suggesting initial areas and motivation for change. The project management methods interact with QFD to determine an im-

Sec. 3.8

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Quslity Functilo. 5 (May) pp. 63-68. U.S. Air Foree, l98L lmcgrate